Avoiding greenwash and

the Triple Bottom Line

Mark Stuart

Head of Research

The Chartered Institute of Marketing

Source: ASA, March 2009

2006 117 complaints about 83 adverts

2007 561 complaints about 410 adverts

2008 369 complaints about 264 adverts

Green motives?

• Only 17% of consumers trust businesses to do the right

thing when it comes to climate change

• 72% feel they should take the issue of climate change

more seriously

• 55% would like more independent assurances on what

companies are doing on the issue of climate change

Source: Climate Change and Brands/Future Foundation

Base: 1600 Adults 16+

Defra’s new revisions on green claims

Likely to include new areas such as:

• Misleading by silence

• Claims need to be within a wider context of reliable or

credible corporate approach (how far can that be

addressed?)

• Encouraging customers towards better behaviours

• Plain language

• Difference between on-product labelling, and advertising

CAP Code updates

• Absolute claims must be supported by a high level of

substantiation

• Comparative claims such as ‘greener’ or ‘friendlier’ can be

justified if the basis for comparison is clear

• Marketers must not suggest their claims are universally

accepted if a significant division of informed or scientific

opinion exists

Source: The good, the

bad and the indifferent,

The Chartered Institute

of Marketing

Implementing the Triple Bottom Line in a company

Source: The good,

the bad and the

indifferent, The

Chartered Institute

of Marketing

Internal opportunities

• Introduce flexible working patterns

• Switch to local suppliers

• Consider how products are packaged

• Have a sustainable sourcing policy

• Adopt a ‘reduce, re-use and recycle’

principle across your business

Benefits of the Triple Bottom Line

� Simultaneously drive better

economy and better world

� More motivated employees

� People, planet and profits

work together in virtuous circle

� Long-term financial planning

� Feeds back into Research and Development and innovation

� Doing the right thing because it is the right thing

The role for marketers

Source: The good,

the bad and the

indifferent: The

Chartered Institute

of Marketing

Green claims

• Be transparent

• Err on the side of caution

• Make labelling more explanatory

• Avoid phrases like ‘environmentally friendly’

• Be aware of implying a claim in imagery

• Reuse, reduce, recycle

Further information

• BRASS: http://www.brass.cf.ac.uk

• Futerra: www.futerra.co.uk

• Mobius: www.mobiusgreenprint.com

• Smart: Know-Net: www.cfsd.org.uk/smart-know-

net/links/full.htm

• The Chartered Institute of Marketing: www.cim.co.uk

Thank you

markstuart@cim.co.uk

www.cim.co.uk

The green iceberg

• 86% of customers say that when price and quality are

equal, linking with a cause would make a difference to

their purchasing choice

Source: The Marketer

• 93% of customers think businesses must be responsible

about their impact on the environment

Source: The Marketer

Four kinds of customer…

• Committed: knows what to do and does it

• Conflicted: knows what to do, but doesn't always bother

• Confused: doesn't know what to do, or how to make a

difference

• Cynical: doesn't know and doesn't care

Ten ideas for sustainable communication

1 big picture 6 optimism

2 technically correct 7 glory button

3 be cool 8 change is for all

4 belong 9 we need more heroes

5 only stories work 10 personal circle

Source: Futerra

Design the product or service well

Save the customer money

Communicate the benefits

Summary – 1

• Focus on the opportunities, not the risks

• Find win-win solutions

• Make different choices

• Change behaviours positively

• Make sure any claims are

provable, factual, accurate,

responsible and credible

Summary – 2

• Don’t sell it because it’s green – sell it because it’s good,

and also green

• You can use sustainability as a differentiator, if it

genuinely is sustainable.

• Not consuming more –

consuming differently

Green marketing in action

Ensure a sustainable ethic runs throughout the

company, to avoid customers being cynical about you

– Doesn’t have to be expensive

– Choose suppliers that share same values

– Make sustainable ethics part of the brand

Green marketing in action

Communications

– Work with a sustainable-minded agency

– Electronic communications not paper

– Use organic inks and recycled paper where you do use print

communications

– Use waterless printers

Green marketing in action

Getting customers to buy…

– Customers will only buy a green product when they are aware of

its social and environmental benefits

– And when they can see these benefits positively, compared with

your competitors

– The quality has to be equal to, or better than, competitors’ if it is to

have green differentiation

– Focus on local sourcing or fair trade

– The interest is there for any industry or product sector… It’s our

job to demonstrate the benefits to customers

“The real agent of change

for sustainable business

practices over the next

decade or so will be

communication.”

Source: The good, the bad

and the indifferent:

The Chartered Institute

of Marketing 2007

The Business Case for sustainability

• Reputation: reduce the risk of public disillusion, negative

press, brand damage

• Innovation: new solutions in Research and Development

• Competitive advantage: customers want to buy from, or

invest in, ethically-minded companies

• Cost savings: local sourcing saves transportation costs;

reducing usage and wastage lowers costs

• Companies that reduce their energy bill by 20% could add

the same amount to their profits as a 5% rise in sales

• Global sales of fair trade products

• 2005: £758 million 2007: £1.6 billion in 2007

• UK sales

• 2005: £195 million 2007: £493 milllion

• Marks & Spencer experiencing significant growth from its

eco-product categories in first half 2007

• Sources: BBC, Computing.co.uk